Chapter 403 Joining the Group to Congratulate the King

He Zhongqiu said at this time: "The market value of a listed film company will not be as large as that of a martial arts school. Ross, you need to be more realistic."

Ross Lewis sighed, "It's impossible to achieve a market value like the martial arts hall. Boss, why don't you give me a little more shares?"

"How about this, I'll give you 5% of the shares." He Zhongqiu said.

"Oh, great!" Ross Lewis immediately became excited.

He Zhongqiu's decision was not made at the last minute. The American He Film Company was entirely supported by Ross Lewis. Without Lewis's connections and abilities, he could at most become a superstar in Hollywood, but not a capital.

Ross Lewis is more important to the film company than Xia Song is to He’s Martial Arts School.

When creating the martial arts school, even without Xia Song, a suitable person could have done the job.

But Hays Pictures in the United States could not have been successful without Ross Lewis.

Ross Lewis said: "Our company's box office of last year's "King of Fighters 2", "Gun Fighter 1", and three other films totaled nearly $10 billion, ranking 8th among all Hollywood film companies.

But the revenue and profit are good. The peripheral income of Iron Eagle King 1 and 2 is very good, including DVD revenue. So far, the total revenue sharing of the two films has reached 1.5 million US dollars, which is net income.

However, the company has little foundation and too few film libraries, so its market value will not be very high. Its current assets are only US$5 million, and its valuation after listing is about US$7 to 8 million.

The P/E ratio of a film company is generally not very high. The P/E ratio when it goes public is generally 3 to 6 times. We take 4 times, and the market value after listing should be around US$30 billion.

Lionsgate ranked sixth in Hollywood in terms of total box office last year, with a market value of $55 billion. We are equivalent to half of Lionsgate.”

"$30 billion?"

He Zhongqiu was actually very satisfied. His total investment in this company was only 1.5 million US dollars, and its current assets are to million US dollars, which means it has made to million US dollars in the past few years.

The global box office of the two Iron Eagle movies alone exceeded 18 billion US dollars, bringing huge profits to the company. The vast majority of the company's profits came from these two movies.

He encouraged him, "Ross, the company will not distribute dividends before going public, so don't rush to go public. The most important thing is to achieve good results."

"Don't worry, Boss, I won't act impulsively. King of Congratulations will be released next year. If the box office is a big hit, then the company's performance next year will not be bad." Ross Lewis nodded.

In the front yard of the villa, next to the table under the parasol, Zhou Xun was memorizing English lines with a few sheets of paper. Zhang Jin had a large stack of papers in front of him, and he was drawing on them with a pen, designing the actions.

The two did not live in He Zhongqiu's villa. Frank Zhang arranged a hotel for them. When they knew He Zhongqiu and his friends were coming today, they came here specially from the hotel.

Wu Jing and Wang Baoqiang are in their respective crews and are not in Los Angeles these days.

"Hey, here we come."

Seeing the car coming in, the two of them quickly stood up.

"Come here, let auntie hug you."

Yang Xue got out of the nanny car holding He Yang, and Zhou Xun hurried forward.

"Brother Xun, just give birth to a child yourself." Yang Xue teased.

Zhou Xun took He Yang away from Yang Xue's arms. He Yang was not shy and looked at him with wide eyes, very curious.

Zhou Xun kissed He Yang on the cheek and said, "I do want to have a baby, but I don't have a father for the child!"

"Ha ha……"

He Zhongqiu, who was holding He Xue, had just got off the car. He found what he heard very interesting and started laughing.

"Mid-Autumn Festival. Let me try?"

Zhang Jin greeted her, tried, and carried He Xue over. The little girl was not shy.

"Brother Zhang, has the date been set?" He Zhongqiu asked.

Zhang Jin teased the child and said, "It's settled. Aren't you going to compete in China on August 8? We'll meet on the 16th, in Jiangbei, Chongqing."

"good."

He Zhongqiu asked again: "Will it not be held in Hong Kong?"

"It will be held in Hong Kong on the 17th, and then we will hold it again in Chongqing." Zhang Jin said with a smile.

Yang Xue said to Zhou Xun, "Xun'er, if you don't give birth now, it will be too late in the future."

Zhou Xun sighed, "You can't just find any man to have a baby with, right? Last time I met Lao Xu, she said she had frozen a few of her eggs in the United States. When she wants to have a baby in the future, she can just find a man with one in his belly."

"Looking for a belly?"

He Zhongqiu and Zhang Jin were both stunned. Even Ning Xu and others who were moving luggage looked at Zhou Xun.

Yang Xue asked quickly: "What do you mean by full?"

Zhou Xun felt a little nervous for some reason and whispered, "It's surrogacy."

Yang Xue and the others looked at each other in bewilderment. He Zhongqiu said, "Looking for a lot of things, that's so easy to say. Is this something a human would do?"

Zhou Xun said: "I also think this matter doesn't seem right."

"This kind of person lacks humanity, Sister Xue, our company cannot cooperate with her in the future." He Zhongqiu said.

"Do not worry."

Yang Xue nodded with a slightly cold expression.

She was pregnant for ten months, and she was carrying twins. Both little ones weighed seven or eight kilograms each. It was much more difficult than for ordinary pregnant women with twins. It is no exaggeration to say that she gave up half her life.

Now I hear "a belly full of" then what is her ten months of pregnancy? Is it the "a belly full of" mentioned by Xu Jinglei?
Xu Jinglei, like her, was born in a military compound. She never expected Xu Jinglei to be such a person. Is his brain full of scum?
"Old Xu, I'm sorry, please take care of yourself, I didn't mean it." Zhou Xun mourned for Old Xu in his heart. Now in the domestic entertainment circle, apart from China Film Group Corporation and He's Film Group, the three companies have a strategic partnership.

With just one word from Yang Xue, it is easy to ban a first-line star, and it is also easy to create a first-line star.

The next day, June 6, He Zhongqiu, Zhou Xun and Zhang Jin joined He Tianwang's crew.

The plot of the movie basically follows the plot of the comics. He Tianwang is a reclusive master from China who possesses powerful qigong and martial arts. He is invincible in close combat, and his qigong can be released externally to kill the enemy. He has a strong sense of justice, which are all labels of this character.

The director is Kevin Feige, and the cast is also very luxurious. All major Marvel heroes appear, but they don’t have many roles, only in the later part where they are rescued. The main plot still revolves around King He.

He Zhongqiu actually doesn't like making this kind of Marvel movie at all, because there are no real fighting scenes, all of them are special effects, and the post-production special effects production is the key to the success or failure of a movie.

His Iron Eagle King series is better than He Tian Wang, with many realistic fighting scenes, but the monsters require a lot of special effects.

When filming Iron Eagle King, the monsters were all played by humans and the fighting was real, but the monsters needed special effects processing in post-production.

As for King He's fighting scenes, none of the Marvel heroes could defeat him and they were no match for him at all. He had to shoot them alone and do the computer special effects synthesis in post-production.

Fortunately, the shooting progress of this kind of movie is very fast. In addition to shooting, he still has the energy to do explosive power and reaction training in track and field.

On August 8st, the listing application of He’s Martial Arts School was approved and the review was completed, which took only one and a half months.

He Zhongqiu was filming in Las Vegas when Yang Xue called and said:

"Sanjin, the date for the martial arts school's listing has been set. October 10th, New York Stock Exchange, stock code HSWG."

“Hopefully the launch will be a success.”

This is his first listed company, He Zhongqiu said happily.

Yang Xue smiled and said, "Our underwriter is Cartoon Company, a long-established company on Wall Street. Although it is not as good as top giants like Goldman Sachs, it has very strong capital operation capabilities and there will be no problem with listing."

Listing in the United States requires intermediaries, and of course the same is true in China now.

The middlemen are sponsors and underwriting companies. Listed companies cannot go public directly through IPO, which actually increases the cost of listing.

The so-called listing means that the underwriter purchases stocks from listed companies and then sells them to its customers, finally entering the secondary market to complete the listing process.

Usually the sponsor and the underwriter are the same person. For example, in this listing of the martial arts school, the cartoon company will obtain a commission of 7% of the total financing amount, which is about US$4.62 million. Although the martial arts school can raise US$66 billion, it will only get a little more than US$61 billion.

Then, as an underwriter, the cartoon company can also purchase a certain number of shares at the issue price, which is the second benefit of the underwriter.

Of course, there is also the risk of losing money if the stock price falls below the IPO price.

As an underwriter, its biggest role is to provide services to listed companies, and its main role is to increase the issue price and successfully complete the listing.

For example, when the martial arts school went public, its own listing team believed that a price-to-earnings ratio of 5 to 7 times would be more appropriate, but the cartoon company believed that 10 times was more reasonable.

The difference is $20 billion.

Of course, the higher the issue price, the more financing it will receive and the more commission the cartoon company will earn, so underwriters will generally try to raise the issue price as much as possible.

On the 3rd, a very important event happened in the domestic entertainment industry.

Chentian Entertainment, which had just acquired Jiahe, once again spent 2.2 million Hong Kong dollars to acquire 74.71% of the shares held by Mr. Yang, the major shareholder of Yinghuang Entertainment Group, becoming the major shareholder of Yinghuang.

"Sanjin, we have lost one opponent and gained another one." Yang Xue called He Zhongqiu after getting the news.

Chenglong then called and said, "Mid-Autumn Festival, Boss Yang is in trouble now. He has lost at least half of his wealth."

"That's not right. Yinghuang Group has four listed companies. How is it possible that it would lose half of them?" He Zhongqiu said.

Chenglong said: "Yinghuang Hotel, Yinghuang Watch, and Yinghuang Securities, the market value of these three companies is not as good as Yinghuang Entertainment.

The highest market value of Yinghuang Entertainment reached 40 billion, and he owned three quarters of it. Now he has only sold it for 2.2 million Hong Kong dollars, and he has lost about 25 billion Hong Kong dollars. Now he has at most a few billion Hong Kong dollars left.”

"That's not my fault, hehe!" He Zhongqiu said with a smile.

"By the way, you and Chentian Entertainment are not getting along, right?" Chenglong asked.

"We do have problems with the Japanese faction, but we don't have any direct conflicts with them. However, they are targets of suppression," said He Zhongqiu.

"Well, they want to cooperate with me, but I think I'd better give up." Chenglong said.

"Brother Cheng, if you have any projects, you can cooperate with my company. I can't do that, but don't I still have China Film Group Corporation?" He Zhongqiu said.

"That's what I thought! By the way, Chentian announced an investment of 20 billion RMB to build a cinema chain." Chenglong said.

"If I had known this earlier, I would have wanted to use the cinema chains to support film and television production. This is indeed a smart move. Now the domestic box office is rising year by year, and the cinema chains are making a lot of money," said He Zhongqiu.

"Aren't you going to increase your investment in theaters?" Chenglong said.

He Zhongqiu said: "Next year, the domestic He's Film Company will be listed, and the purpose of raising funds is to be used for cinema investment."

Chenglong said, "Good fellow, Zhongqiu, I'm so jealous. I've worked hard all my life, but I don't have a single listed company, and you have one after another. How's it going, have you decided to list your martial arts school?"

"It's decided. It will be on the market on October 10th," said He Zhongqiu.

"Congratulations." Chenglong quickly offered his congratulations.

　This is a new book by an old author. I recommend it to those who like it. You can take a look.

(End of this chapter)